The paper presents the small hydro power plant analysis with an emphasis on small hydro power plants as specific power facilities. It covers an impact of the small hydro power plants development strategy implementation on the diversification of electricity generation in the Republic of Croatia. The basic strategy types were elaborated and a strategic management process analyzed. The role and significance of strategic management in the society is described. Basic data of small hydropower plants as technical-technological systems for electricity generation is presented and the methods of the small hydro power plant connection to the electric power grid covered. The impact of small hydro power plants on the environment is given and the procedures of their designing, construction and operation with the aim to decrease environmental impact as much as possible shown. The economic policies of the European Union and the Republic of Croatia in the area of the small hydro power plants and their energy regulations which define the energy market are presented. Plans for the construction of small hydropower plants in several EU countries are shown as potential locations for the construction of small hydropower plants in the Republic of Croatia. The poll methodology has identified the characteristics and the impact of the small hydro power plants strategy implementation on the diversification of electricity generation in the Republic of Croatia. Once the data was collected, statistical data processing was applied using the descriptive statistics method, correlation and comparative statistics. Finally, an analysis of the research results was presented and a conclusion made about the impact of the small hydro power plants strategy implementation on the diversification of electricity generation in the Republic of Croatia.